Yoodli, an AI-driven communication training startup, has skyrocketed in valuation to over $300 million—more than triple its worth just six months ago. This growth comes as it develops technology aimed at assisting individuals rather than replacing them with machines.
The surge in valuation follows Yoodli’s recent $40 million Series B funding round, led by WestBridge Capital, with contributions from Neotribe and Madrona. This comes on the heels of a $13.7 million Series A round announced in May, bringing its total funding to nearly $60 million.
As AI tools become more prevalent in workplaces, raising concerns about automation, Yoodli stands apart. The four-year-old startup, based in Seattle, employs AI to create simulated scenarios such as sales calls, leadership coaching, interviews, and feedback sessions, offering users structured practice to enhance their speaking abilities.
Varun Puri, who co-founded Yoodli with former Apple engineer Esha Joshi in 2021, has a background that includes working at Google’s X division and handling special projects for Sergey Brin. After moving to the U.S. at 18, he recognized the communication challenges faced by students and young professionals—especially those from countries like India, including himself.
Initially focused on helping individuals with public speaking—a skill that two out of three struggle with, according to Yoodli data—the platform quickly pivoted as users began using it for interview prep, sales pitches, and tough conversations. This shift led Yoodli to transition from a consumer-oriented product to enterprise training, offering AI role-plays and experiential learning tools for various business needs.
“In the old world, training often involved static content or passive videos that people would rush through,” Puri said. “That doesn’t mean real learning took place.”
Companies like Google, Snowflake, Databricks, RingCentral, and Sandler Sales now utilize Yoodli for their employee and partner training. The startup also markets its platform to coaching firms like Franklin Covey and LHH, which can adapt the system to their training frameworks. According to Puri, the tool is meant to complement, not replace, human coaches, maintaining a personal touch in training.
“I believe AI can elevate you from a zero to an eight, or even a nine,” Puri explained. “But the essence of who you are—the authenticity and vulnerability of human feedback—will always be essential.”
The platform supports various large language models, allowing users to choose options like Google’s Gemini or OpenAI’s GPT. Enterprises can integrate it into their existing software, or users can access it via a web browser, with support for multiple languages, including Korean, Japanese, French, Canadian French, and several Indian languages.
Yoodli opted not to develop a dedicated mobile app to streamline the user experience during training sessions.
Although Puri didn’t disclose user numbers, he mentioned that most of Yoodli’s revenue now comes from enterprise clients. Between the Series A and B rounds, there was a 50% increase in the number of role-plays conducted and total practice time on the platform. The company also claimed a 900% growth in average recurring revenue over the past year, without providing specific figures.
While Yoodli wasn’t initially looking to fundraise again so soon, unexpected interest from investors led to the latest round. Puri attributed this to strong performance metrics, important clients, and key executive hires, including former Tableau and Salesforce exec Josh Vitello as chief revenue officer (CRO), Andy Larson as CFO, and Padmashree Koneti as chief product officer (CPO).
Though the market for AI-based communication tools is growing, Puri emphasized Yoodli’s commitment to deep customization and focus on specific training needs, allowing companies to tailor the system to their requirements.
With around 40 employees, Yoodli plans to use the new funding to enhance its AI coaching, analytics, and personalization tools, expand its presence in professional development, and grow its teams in product, AI research, and customer success. The company also aims to extend its reach in the Asia-Pacific region while solidifying its position in the U.S. market.
